Location: Hancock County, ME | Metro: Hancock County, ME
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,360 | $374,625 | 0.36% | F |
| 2BR | $1,730 | $535,858 | 0.32% | F |
| 3BR | $2,390 | $661,961 | 0.36% | F |
| 4BR | $2,560 | $789,614 | 0.32% | F |
| 5BR | $2,970 | $1,137,181 | 0.26% | F |
U.S. Census Bureau data (2024)
Investors considering the ZIP code 04609, which encompasses Bar Harbor, ME, often raise several critical questions regarding the feasibility of investing in Section 8 properties. Let's address these concerns directly.
Objection 1: Will Fair Market Rent (FMR) of $1,730 (for the fiscal year 2026) cover the mortgage on a $648,131 home?
The FMR figure represents the maximum amount that a Section 8 tenant can be expected to pay in rent. However, it does not necessarily cover the entire mortgage payment on a property valued at $648,131. To determine if the FMR will sufficiently cover the mortgage, one must consider the prevailing interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage with an interest rate around 5%, the monthly mortgage payment on a $648,131 home would be approximately $3,500. This is significantly higher than the FMR of $1,730. Therefore, the FMR alone is insufficient to cover the mortgage payments.
Objection 2: Is there enough renter demand at 25.5%?
The percentage of renter-occupied housing units in ZIP 04609 stands at 25.5%. While this indicates a moderate level of rental demand, it is important to note that the overall population size and seasonal fluctuations in Bar Harbor could impact this figure. The area is known for its tourism, which might attract additional renters during peak seasons but could also lead to lower demand during off-peak times. Additionally, the 25.5% figure suggests that a majority of residents own their homes, which could indicate a preference for homeownership over renting. This would mean that while there is some demand, it may not be as robust as in areas with higher percentages of renters.
Objection 3: Will vouchers keep pace with market rents of $1,106?
The voucher amount, as part of the FMR, is set at $1,730 for the fiscal year 2026. This is above the current market rent of $1,106, suggesting that vouchers should be sufficient to cover the average rent in Bar Harbor. However, the key consideration here is whether the voucher amounts will continue to increase in line with market rents. The U.S. Department of Housing and Urban Development (HUD) adjusts FMRs annually based on local economic conditions, but there is no guarantee that increases will match inflation or specific local trends. Investors should monitor HUD announcements and local real estate trends to ensure that voucher amounts remain aligned with market rents.
In summary, while the FMR in ZIP 04609 is not likely to cover the mortgage on a $648,131 home, there is still a moderate level of rental demand. Vouchers currently exceed market rents, but ongoing monitoring is necessary to ensure they keep pace with future increases.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.